Investment philosophy

The investment philosophy of ShelteR Investment Management centers around three core values

Achieving returns with enhanced stability

ShelteR’s investment goal is to reduce risk without impacting returns by using advanced risk analysis to generate more stable portfolios.

Historically, it has been observed that low-volatility assets often have higher risk-adjusted returns compared to high-volatility assets. This phenomenon is called the low volatility anomaly. Academic research investigating this anomaly shows that the relationship between risk and return is often the opposite of what financial theory leads us to believe, and these findings are fairly consistent across different markets and periods.

ShelteR’s investment team therefore use a number of proprietary models to improve the risk of the investment portfolios, to take advantage of this anomaly.


A rigorous approach to investments

ShelteR use robust methods and models to construct investment portfolios. The market is continuously monitored to aim to identify emerging trends and adapt the portfolios accordingly. All models have been tested across various market cycles to assess their reactivity to fast-changing regimes via portfolio corrections and rebalances. ShelteR targets to maintain a consistent investment style and a pure play, to avoid style drift.

At ShelteR, a variety of models are used for the construction of investment solutions. For example, factor-based models are used in many solutions, allowing to select and weight assets based on the factors considered important.

ShelteR also conducts qualitative analysis in addition to quantitative analysis using advanced research, high quality databases and external specialist advisers on specific companies to help optimize portfolios.

Post-trade analysis is conducted to analyse performance attribution and the sources of risk and premia.


Operating as a sustainable firm

ShelteR aims to be a real niche-player within the investment management sector where sustainability is key in its philosophy and throughout its processes.

ShelteR operates on a sustainable platform where they try to give their clients a sustainable service.